Correlation Between CIMC Vehicles and V V
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By analyzing existing cross correlation between CIMC Vehicles Co and V V Food, you can compare the effects of market volatilities on CIMC Vehicles and V V and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CIMC Vehicles with a short position of V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and V V.
Diversification Opportunities for CIMC Vehicles and V V
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CIMC and 600300 is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food and CIMC Vehicles is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CIMC Vehicles Co are associated (or correlated) with V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and V V go up and down completely randomly.
Pair Corralation between CIMC Vehicles and V V
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to under-perform the V V. In addition to that, CIMC Vehicles is 1.15 times more volatile than V V Food. It trades about -0.05 of its total potential returns per unit of risk. V V Food is currently generating about -0.02 per unit of volatility. If you would invest 293.00 in V V Food on August 27, 2024 and sell it today you would lose (3.00) from holding V V Food or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. V V Food
Performance |
| Timeline |
| CIMC Vehicles |
| V V Food |
CIMC Vehicles and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and V V
The main advantage of trading using opposite CIMC Vehicles and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, V V can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in V V will offset losses from the drop in V V's long position.| CIMC Vehicles vs. Focus Media Information | CIMC Vehicles vs. Chengdu B ray Media | CIMC Vehicles vs. Hengdian Entertainment Co | CIMC Vehicles vs. Oriental Times Media |
| V V vs. China Petroleum Chemical | V V vs. PetroChina Co Ltd | V V vs. China State Construction | V V vs. China Railway Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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